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Student Loans: Pros and Cons of Financial Aid

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It's an unhappy truth that spurns well-intended warnings, those dire offerings of wisdom and parental sense - education is not a certainty. It is instead a desire, earned through diligence and payment for the program. To learn is to pay, and universities open their gates only to those with dollars to spare. It's not a right of the willing; it’s a reward of the wealthy...or at least the indebted.

Financial aid has become the answer to all collegiate financing questions. The concerns of affording an education are now considered futile: loans can be secured, ensuring that all who wish to indulge in more than the common philosophies (self-taught and unsatisfying) can succeed.

This trend is easy in its appeal. It's also alarming in its potential.

Too many hurry after the notion of financial aid, offering their signatures to lenders without care. They do not consider the future. They do not consider the cost. They think only of the present and the opportunity to finally learn.

This is a mistake.

While receiving aid is a tempting venture, it must still be recognized for all of its facets. All loans must then be examined for their strengths, weaknesses and unexpected demands. Not every student will benefit from this practice. It must therefore be understood that you might not qualify for grants or educational aid as it takes into account several verification steps. The easiest way to get free money for college is through online scholarships offering cash rewards.

Student Loans: Advantages

There are many credible reasons to consider borrowing money. These include:

1. Unlike so many elements of life a student loan can be an assurance when offered on a federal level. The requirements of government lending are not imposing and the process is scholar-friendly. It can be accomplished easily. The acceptance rate is much more higher.

2. Guaranteed Flexibility. Too often lenders force impossible plans and too rigorous of standards. Student loans, however, provide leniency. They grant the ability to transition from college to a career without the fear of immediacy. You'll have time to settle into your life before payment begins.

3. Developing credit. While many students give little consideration to their credit, they can still reap the benefits of a solid reputation. Loans are deemed responsible and will therefore appear favorably on any report.

Student Loans: Disadvantages

While it often seems ideal, financial aid can still become a burden. This must be noted by all.

1. Decade of demands. Though payment plans can be crafted wisely, they can still become tedious. Loans often require many years for full reimbursement. This can strain patience.

2. Improper lender. While federal aid is a viable alternative, other options (such as home equity, parental consignment and private student loans) will provide less protection. Their interest rates will be considerably higher and their reliance on outside sources--such as family members--can be precarious. The concerns will be many.

3. Wage garnishing. Loans are not gifts. They must be repaid. And, should you hesitate to do this, you may find your wages seized. Your salary can be offered to your debt and this can leave you without the needed funds to sustain your life.

Financial aid has been defined as worthy and it can be – one must determine if it’s considered good debt or bad debt. Financial aid must simply be realized and countered. Good intentions must be met with better sense.